TAXMAN Posted September 14, 2017 Report Share Posted September 14, 2017 Anybody got a good 1120-s basis worksheet? Quote Link to comment Share on other sites More sharing options...
Catherine Posted September 14, 2017 Report Share Posted September 14, 2017 CFS Tax Tools has a good one in their set. 1 Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted September 14, 2017 Author Report Share Posted September 14, 2017 I did not see one for 1120-s stock basis. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted September 14, 2017 Report Share Posted September 14, 2017 TaxBook has one in the Small Business section on page 24-5. 1 Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted September 15, 2017 Author Report Share Posted September 15, 2017 Thanks found it. Quote Link to comment Share on other sites More sharing options...
grandmabee Posted September 15, 2017 Report Share Posted September 15, 2017 ATX also has it on the 1120S tax return. 1 Quote Link to comment Share on other sites More sharing options...
Edsel Posted September 18, 2017 Report Share Posted September 18, 2017 I use the following. I've never encountered a situation which didn't fit: +Beginning Balance +Partner contributions +Partner's share of increase in guaranteed debt +Partner's share of non-taxable income +Partner's share of Taxable income -Restoration of previously suspended losses (if any) -Partner's share of Non-deductible expenses -Partner's share of Deductible Losses -Partner's share of decrease in guaranteed debt -Partner withdrawals Guaranteed payments do not affect the calculation, as they should be a deduction for the partnership. Guaranteed debt is not available for Subchapter S basis calculations, and that is one thing that should be considered when deciding on the type of entity. Special allocations (such as hot assets) should be computed before partner's share of anything is established. If a complete partnership return is to be prepared, it should include Schedule L (balance sheet), and reconciling schedules M-1 and M-2. Preparing these schedules means that "capital balances" should also be encountered and calculated. It should be emphasized to the client that "Capital Balance" and "Basis" are two different things, as the client will tend to believe his capital balance is his proper measure of ownership in the event of a sale. 1 Quote Link to comment Share on other sites More sharing options...
Edsel Posted September 18, 2017 Report Share Posted September 18, 2017 As you can tell, I've given the basis calculation for a partnership, not an S-corp. Upon reading the original post, I edited the message above when discovered (less than 2 minutes). I received a message that too much time had elapsed and that the message could not be edited. I don't know what else to say. 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted September 18, 2017 Report Share Posted September 18, 2017 20 minutes ago, Edsel said: As you can tell, I've given the basis calculation for a partnership, not an S-corp. Upon reading the original post, I edited the message above when discovered (less than 2 minutes). I received a message that too much time had elapsed and that the message could not be edited. I don't know what else to say. If the time for editing has lapsed, members still have the ability to entirely hide their posts and post a new one with different information. The admin team will still be able to see the hidden post but not the general membership. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted September 18, 2017 Report Share Posted September 18, 2017 Hopefully Taxman's client doesn't have debt basis in this S corp that has been used to allow losses at the personal level. I won't get into that discussion here, but if this is the case, Taxman please let us know and I'll post more information on those calculations. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted September 18, 2017 Report Share Posted September 18, 2017 ATX handles both stock basis and debt basis very well. But I never allow my S corps to have any loan payable shareholders. It's never documented in any way, so I just move it all to add'l paid in capital. Keeps it simple and avoids debt basis calcs. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted September 18, 2017 Report Share Posted September 18, 2017 8 minutes ago, Abby Normal said: ATX handles both stock basis and debt basis very well It does, and sometimes a new client's prior returns don't include those calculations so it's necessary to calculate outside of the program to arrive at the starting basis for the year we take over. Same idea with that debt basis, you might have to deal with it for a new client. 1 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted September 18, 2017 Report Share Posted September 18, 2017 I hate preparers who don't calc or provide the calc of basis. The return is useless without basis. I've caught several local CPAs deduction 1120S/1065 deducting losses with no basis. 2 Quote Link to comment Share on other sites More sharing options...
Catherine Posted September 18, 2017 Report Share Posted September 18, 2017 I have seen basis calc's come with returns only on VERY rare occasions. In my experience, it's even more rare than depreciation schedules. Grrrr..... 2 Quote Link to comment Share on other sites More sharing options...
Randall Posted September 19, 2017 Report Share Posted September 19, 2017 I provide the basis worksheet with the Schedule K-1 for each shareholder/partner, but not with the entity return. Quote Link to comment Share on other sites More sharing options...
Catherine Posted September 19, 2017 Report Share Posted September 19, 2017 41 minutes ago, Randall said: I provide the basis worksheet with the Schedule K-1 for each shareholder/partner, but not with the entity return. Is there a reason for that? I have always included full K-1 info with the entity return - figuring the entity will get the first query for a K-1 needing replacement. Then again, I think the largest S-corp I have dealt with only had a half-dozen or so shareholders, all of whom were either related to or had long-standing relationships with the president. Quote Link to comment Share on other sites More sharing options...
Randall Posted September 20, 2017 Report Share Posted September 20, 2017 On 9/19/2017 at 10:27 AM, Catherine said: Is there a reason for that? I have always included full K-1 info with the entity return - figuring the entity will get the first query for a K-1 needing replacement. Then again, I think the largest S-corp I have dealt with only had a half-dozen or so shareholders, all of whom were either related to or had long-standing relationships with the president. I just thought the basis had more to do with the shareholder's personal return and so I thought I should provide it with the K-1. Most of mine are one or two shareholders and I do their personal returns. There have been a few times in the past that a shareholder had their personal return done elsewhere. Quote Link to comment Share on other sites More sharing options...
Edsel Posted September 22, 2017 Report Share Posted September 22, 2017 On 9/18/2017 at 9:47 AM, Abby Normal said: ATX handles both stock basis and debt basis very well. But I never allow my S corps to have any loan payable shareholders. It's never documented in any way, so I just move it all to add'l paid in capital. Keeps it simple and avoids debt basis calcs. This means that distributions are now dividends instead of repayment of a loan. Stupid me, right? because Dividends are not taxable anyway!! Stupid I may be - but not for this reason. This is not universally true. Some states do not honor the subchapter S election, particularly the states that don't have an income tax. If these states didn't tax like a C Corp there wouldn't be any taxable people to "pass through" to. Additionally, what would happen if an S corp wanted to change down the road? Would the historical dividends be sequestred just like if the reverse election were true? Quote Link to comment Share on other sites More sharing options...
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